1 Last Thing Lucid Needs to Prove to Wall Street

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Currently, the stock market shows a moderate interest in the electric vehicle (EV) sector, as sales and market dominance are not increasing as quickly as previously expected.

However, among electric vehicle manufacturers, Lucid Group (LCID) is one that has effectively reversed its operations. After enduring numerous setbacks, interruptions, and underperformances over the years, this automaker has managed to pick up speed and consistently increase deliveries for seven consecutive quarters. It’s demonstrated its ability to create, innovate, and launch outstanding high-quality vehicles, and it has successfully drawn in a significant investor – Saudi Arabia’s Public Investment Fund (PIF).

However, Lucid still needs to demonstrate one crucial aspect to Wall Street – the ability to commercialise its technology and create income, similar to how competitor Rivian Automotive has managed with Volkswagen.

Look, hands-free!

Lucid’s automobiles are receiving over-the-air (OTA) software upgrades, making them increasingly skilled and sophisticated. This is fantastic news for the car manufacturer who prides itself on having top-tier electric vehicle technology. Commencing from July 30, owners of Lucid Air models will be able to enjoy new functionalities courtesy of an OTA update. The update encompasses Hands-Free Drive Assist and Hands-Free Lane Change Assist features.

The latest development indicates that Lucid is still investing heavily in Advanced Driver Assistance Systems (ADAS). As mentioned by Kai Stepper, Lucid’s Vice President of ADAS, this update provides a sneak peek into the future that Lucid aims to create.

These new systems, although they may appear as buzzwords to some investors, should not be underestimated as they have the potential to generate income through various means. For instance, take the Lucid’s DreamDrive Pro, an additional Advanced Driver Assistance System (ADAS) priced at around $950 plus tax. This system incorporates visible-light cameras, ultrasonic sensors, LiDAR, and surround view cameras among other components.

Instead, what might capture the attention of investors is if Lucid can successfully market its software and technological components to a prominent automaker for large-scale production within their vehicles. This is similar to what Rivian achieved through its partnership with Volkswagen.

Show me the money!

Rivian has entered into a partnership with the Volkswagen Group in an agreement valued at up to $5.8 billion, which may even exceed this figure. This collaboration leverages Rivian’s advanced software infrastructure and electronic designs with Volkswagen’s vast manufacturing capabilities and vehicle platforms. The key point is that some major automakers have struggled to develop robust technology stacks, and Volkswagen recognized the need for assistance in this area.

This move is significant not just for boosting Rivian’s financial reserves, but also for exposing Rivian’s technology and goods to enormous crowds through Volkswagen vehicles across various vehicle categories.

It’s been demonstrated that Lucid possesses the ability to create an extraordinary automobile. The management team has pointed out that a significant number of their new clients are migrating from Tesla, due to recent issues Tesla is facing and customers seeking a top-tier, cutting-edge alternative. At this moment in time, Lucid is effectively introducing vehicles into the market and increasing production rates, with the electric Gravity SUV undergoing production at the present.

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Lucid still needs to demonstrate to Wall Street its ability to bundle its technology stack and offer it to customers like Volkswagen, which is one of the key challenges left for a company that seems set for a robust end to 2025, despite a slow electric vehicle market and questions about tariffs.

Considering an investment in Lucid involves significant risk, yet if the company manages to establish a partnership akin to Rivian’s, its future could shine exceptionally bright.

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2025-07-20 15:05